Markets view glass as half-full

Aside from a rebound in the cost of sugar prompted by lower production forecasts, the key driver of most commodity prices this past week has been an improvement in sentiment in global financial markets generally. The incoming data have been mixed – mostly better in the US, mostly worse in Europe and Japan – but expectations of additional policy stimulus have lifted the mood. Oil markets also appear to have taken the view that a partial freeze on output, while second best to outright cuts, would be better than no limits at all.